Hi tutor,

Kindly help me in solving this question.Your firm is considering introducing a new product for which net returns are expected to be

Year 1 to Year 3 inclusive: $2000 per year

Year 4 to Year 8 inclusive: $5000 per year

Year 9 to Year 12 inclusive: $3000 per year

The introduction of the product requires an immediate outlay of $15 000 for equipment estimated to have a salvage value of $2000 after twelve years. Find the rate of return.

Thank you.Looking forward to your help.

Important:It would be done through NPV formula.